Target Corp. (NYSE: TGT) took a realistic step back and cut their expected annual profit as they continue to deal with the costs that amounted over the holiday-season data breach months ago.
The company is hopeful that, by offering more discounts, they will be able to attract a wider array of potential customers as well as reassuring customers that the massive data breach is now a resolved issue.
As a result of the incident, Target announced on Wednesday that its second-quarter earnings dropped nearly 62 percent, which was extremely close to their estimate earlier this month.
The third-largest US retailer was excited to report that sales and customer traffic have been on the rise for six weeks in a row. Much of this can be attributed to the back-to-school shopping that is currently happening.
Before this period of growth, customer traffic had fallen nine straight quarters, but with a significant improvement from 2.3 percent in the first quarter to 1.3 percent in the second quarter. Same-store sales have been stagnant in the past six quarters.
A few weeks ago, Target named PepsiCo (NYSE: PEP) executive Brian Cornell as the retailer’s new CEO with the hopes of turning a new leaf and moving forward alongside the American customers.
In the following months, Target is looking to complete its $100 million plan to use chip-based credit technology in all of its stores. The large US retailer is hopeful this increase in security and technology will prevent the chance of any future data breaches.